15.11.2015 Consumer Markets and Consumer Buyer Behavior Definitions • Consumer Buying Behavior – Buying behavior of individuals and households that buy products for personal consumption. • Consumer Market – All individuals/households who buy products for personal consumption. Figure 5-1: Model of Buyer Behavior Stimulus Response Model Marketing and other stimuli enter the buyer’s “black box” and produce certain choice / purchase responses. Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses. 2 Characteristics Affecting Consumer Behavior Figure 5-2: Factors Influencing Consumer Behavior Key Factors • • • • Cultural Social Personal Psychological • Culture • Subculture – Hispanic consumers – African Americans – Asian Americans – Mature consumers • Social Class 1 15.11.2015 Elements of Culture • Language • Beliefs and Values • Nonverbal Communication – Body Language – Time – Esthetic • Religion • Social Institution • Material Culture • Education Social Class • Social Class: Relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors. – Social class is not determined by single factor, such as income, – but is measured as a combination of occupation, income, education, wealth and other variables Social Classes In Turkey • Class Structure in the United States: – Warner’s six social classes: • • • • • • (1) Upper Upper (2) Lower Upper (3) Upper Middle (4) Lower Middle (5) Upper Lower (6) Lower Lower • Class Structure Around the World: – Every society has some type of hierarchical class structure Characteristics Affecting Consumer Behavior Key Factors • • • • Cultural Social Personal Psychological • Groups – Membership – Reference • Aspirational groups – Opinion leaders • Family – Kids can influence • Roles and Status 2 15.11.2015 Opinion Leaders Groups • People who are knowledgeable about products and whose • Group: Two or more people who interact to accomplish advice is taken seriously by others. individual or mutual goals. • Groups that have a direct influence and to which a person Opinion leadership is a big factor in belongs are called membership groups. the marketing of athletic shoes. • Reference groups (A Person does not belong) serve as a Many styles first become popular in direct or indirect points of comparison or reference in the inner city and then spread by forming a person’s attitude or behavior. word-of-mouth. • Aspirational group is one to which the individual wishes to belong FAMILY 2004 Prentice Hall, Inc. • Family Size is important 14 • Although many men still wear the pants in the family, it’s women who buy them. Children may also have a strong influence on family buying decision factor for purchasing decision 3 15.11.2015 Role and Status • Role consists of the activities people are expected to perform according to the persons around them • Each role carries a status reflecting the general esteem given to it by society – Achieved status: Status earned through hard work or diligent study – Ascribed status: Status one is born with – Status hierarchy: Structure in a social group in which some members are better off than others Characteristics Affecting Consumer Behavior Key Factors • • • • Cultural Social Personal Psychological Lifestyles: Jeep targets people who want to “leave the civilized world behind” • • • • Age and life-cycle Occupation Economic situation Lifestyle – Activities, interests, and opinions – Lifestyle segmentation • Personality and self-concept – Brand personality What other types of images could be used to appeal to this lifestyle? Characteristics Affecting Consumer Behavior Key Factors • Motivation – Needs provide motives – Motivation research • • • • Cultural Social Personal Psychological – Maslow’s hierarchy of needs • Perception – Selective attention, selective distortion, selective retention • Learning – Drives, stimuli, cues, responses and reinforcement 22 • Beliefs and attitudes 4 15.11.2015 Maslow’s Hierarchy Motive (Drive): A need that is sufficiently pressing to direct the person to seek satisfaction https://www.youtube.com/watch?v=OTPJYZLD6L8 https://www.youtube.com/watch?v=ND3OuISVnfk Perception • The process by which people select, organize, and interpret information to form a meaningful picture of the world – Selective Atention: the tendency for people to screen out most of the information to which they are exposed. • I will start to learn tennis. I have selective attention for tennis shoes. – Selective Distortion: The tendency of people to interpret information in a way that will support what they already believe. • Ads that focused on the health demage effects of cigarette are not perceived easily by heavy smoker. – Selective Retention: People also will forget much that they learn. They tend to retain information that supports their attitudes and beliefs. • I have got favorable attitude to “Toshiba” brand. I am likely to remember good points about Toshiba. 26 Learning • Changes in an individual’s behavior arising from experience – Behavioral Learning • Classical Conditioning • Instrumental Learning – Cognitive Learning 5 15.11.2015 Types of Buying Behavior Attitude • A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward and object or idea. The milk moustache campaign changed attitudes toward milk. Complex Buying Behavior Involvement: is defined as the degree of personal relevance which the product holds for the consumer. Low involvement Purchases were considered of minimal personal relevance High involvement As opposed to more complex, searchoriented purchases Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands. Consumer has much to learn about the product. is a low involvement media (provides passively storage the info for people mind) is a high involvement media (cause the complex information storage) Marketers need to differentiate their product specifications. describe the brands benefits using print media with long copy. motivate store sales people (Because it effects the final brand choice) Dissonance-Reducing Buying Behavior Habitual Buying Behavior Consumer buying behavior in situations characterized by high consumer involvement but few perceived differences among brands. Consumer buying behavior in situations characterized by low consumer involvement in a purchase and few significant perceived differences among brands. Product Buyer Expensive, risky and infrequently purchase • Frequently purchase product There is a post purchase disonance Buying activity is relatively quickly There is a purchase convinience. Marketer • Low cost Low Involvement After sale comminication is important in order to create the perception differences among brands. “No evaluation or search before of purchase” • Consumer passively receive the information as they watch TV or read magazines • Ad repitation create brand familarity Marketers can try to convert low-involvement products into high involvement products 6 15.11.2015 Variety-Seeking Buying Behavior Consumer buying behavior in situations characterized by low consumer involvement in a purchase and significant perceived differences among brands. The Buyer Decision Process Consumer often do a lots of brand switching. Brand switching occurs for the sake of variety rather than because of dissatisfaction The market leader Will try to encourage variety-seeking buying behavior by dominating self space, keeping shelves fully stocked, and running frequent reminder advertisement The challenger firms Will encourage variety seeking by offering lower prices, special delas, coupons, free samples The Buyer Decision Process Stages • • • • • Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior • Needs can be triggered by: – Internal stimuli • Normal needs become strong enough to drive behavior – External stimuli • Advertisements • Friends of friends Attempt to stimulate need recognition The Buyer Decision Process Stages • • • • • • Consumers exhibit heightened attention or actively search for Need recognition information. • Sources of information: Information search – Personal Evaluation of alternatives – Commercial Purchase decision – Public Postpurchase behavior – Experiential • Word-of-mouth 7 15.11.2015 • • • • • The Buyer Decision Process The Buyer Decision Process Stages Stages • Evaluation procedure depends on the consumer and the buying situation. Need recognition • Most buyers evaluate multiple Information search attributes, each of which is weighted differently. Evaluation of alternatives • At the end of the evaluation Purchase decision stage, purchase intentions are Postpurchase behavior formed. • • • • • • Two factors intercede between purchase intentions and the actual decision: Need recognition – Attitudes of others Information search – Unexpected situational Evaluation of alternatives factors Purchase decision Postpurchase behavior The Buyer Decision Process for New Products The Buyer Decision Process New Product Stages Adoption Process The mental process through which an individual passes from the first hearing about an innovation to final adoption. Awareness: The consumer become aware of the new product, but lacks of information on it. STAGES IN THE A. P. • • • • • • Satisfaction is key: – Delighted consumers engage in positive wordNeed recognition of-mouth. Information search – Unhappy customers tell on Evaluation of alternatives average 11 other people. Purchase decision – It costs more to attract a new customer than it does Postpurchase behavior to retain an existing customer. • Cognitive dissonance A good, service or idea that is perceived by some potential customers as a new Interest: The consumer seeks information about the new product Evaluation: The consumer considers whether trying the new product makes sense. Trial: The consumer tries the new product on a small scale Adoption: The consumer decides to make full and regular use of the new product Buyer Decision Process for New Products Figure 6-7: Adopter Categories Based on Relative Time of Adoption • Individual Differences in Innovativeness – Consumers can be classified into five adopter categories, each of which behaves differently toward new products. 8 15.11.2015 Buyer Decision Process for New Products • Product Characteristics and Adoption – Five product characteristics influence the adoption rate. • • • • • Product Characteristics Relative Advantage Compatibility Relative Advantage Compatibility Complexity Divisibility Communicability Discussion Question Describe how each of the five productrelated innovation characteristics will influence the rate of the adoption for this product. Complexity Divisibility Communicability Buyer Decision Process for New Products • International Consumer Behavior – – – – Values, attitudes and behaviors differ greatly in other countries. Physical differences exist that require changes in the marketing mix. Customs vary from country to country. Marketers must decide the degree to which they will adapt their marketing efforts. 9